Former Capitan postmaster pleads guilty to embezzlement

A former Capitan postmaster pleaded guilty Tuesday to a felony involving embezzling money belonging to the United States, according to a news release from the office the U.S. Attorney, New Mexico district. The hearing took place in federal court in Las Cruces.

Kristi Sepkowitz, 55, of Alto, was postmaster of the Capitan Post Office in Lincoln County when she committed the offense. She also was the overseer of the Fort Stanton Monument Post Office.

According to the release, between February of 2011 and December of 2013, Sepkowitz issued postal money orders to herself without making appropriate payment. She also took cash from daily postal deposits and used the cash for her own purposes. Sepkowitz attempted to pay back the postal funds she embezzled by writing checks on her personal bank account and depositing the checks with the daily postal deposits.

"According to court filings, Sepkowitz embezzled and converted more than $450,000 in postal funds over the course of the scheme. She has fully repaid the U.S. Postal Service for the postal funds she embezzled and converted to her own use," the press release states.

On Dec. 9, 2013, the daily deposit for the Capitan Post Office was intercepted because of the deposit amounts were irregular in that Sepkowitz had deposited a check to cover postal money orders and a check is not an acceptable form of payment for money orders, according to the criminal complaint.

When questioned about that and other financial discrepancies involving money orders and checks, Sepkowitz tried to explain she was duplicating transactions through her Mary Kay business, but investigators discovered check deposits from Sepkowitz were not made on the same days money orders were being issued.

Investigators discovered she had been doing the same type of thing since February of 2012.

In her plea agreement, Sepkowitz admitted she betrayed a trust with respect to funds belonging to the U.S. Postal Service by engaging in a scheme during which she embezzled and converted funds, including cash and money orders, belonging to the U.S. Postal Service to her own use.

Under the terms of her plea agreement, Sepkowitz will be sentenced to three years of probation and required to pay a $1,000 fine. She remains on conditions of release pending her sentencing hearing, which has yet to be scheduled.

This case was investigated by the U.S. Postal Service, Office of Inspector General and is being prosecuted by Assistant U.S. Attorney Brock E. Taylor, of the U.S. Attorney's Las Cruces Branch Office.